Featured Domains

.XXX Domain Nets $13 Million from Sunrise

ICM Registry, backer of the new .xxx top level domain name, has pulled in about $13 million from its trademark/existing domain sunrise period.

The company received nearly 80,000 applications during the sunrise period that ended today. The wholesale cost was $162 per application, which equals about $13 million.

Oh, and that’s without considering that multiple applications for the same domain will result in an auction.

The typical domain name registrar charged upwards of $200, meaning applicants shelled out around $16 million on sunrise applications.

ICM expected 10,000 applications to block .xxx domain names in the sunrise period. It spent $1 million promoting this opportunity.

The landrush period for .xxx domains begins November 8. During landrush any member of the sponsored community (i.e. adult companies) can apply for domains even without a corresponding trademark. Multiple applications for the same domains will result in an auction.

This is terrible news. ICM spent $14million just getting the STLD, according to their own account. Additionally, they have a $5 million contract for PR/marketing. On top of that, add the 8 million dollar contract with McAfee. Based on 80,000 registrations, ICM owes ICANN $160,000 ($2 per registration) and they owe IFFOR $800,000 ($10 per registration). These numbers do not even take into consideration their operating expenses. If you do the math, it is clear that .xxx is nothing but another failed TLD.

First, of course they didn’t write a check for 8 million. Nonetheless, ICM owes McAfee $8 million. That obligation is on their books. When and by what means they pay that debt is irrelevant. Second, I don’t understand why you are so optimistic about open registration. This is an sTLD; it is restricted to the adult industry. Registrants must agree to develop adult sites. Those few adult companies that actually support the creation of this sTLD participated in the Founders Program. Anyone who is in the adult industry, who is not participating in the industry’s boycott, and who has a trademark would already have registered their domain. Mainstream businesses hoping to protect their brand have already done so. So, you are assuming that a significant portion of the adult industry has money to spend on speculative investments. Anyone who know anything about this industry knows that it is struggling. Businesses are closing. companies are laying off employees. Piracy has taken a devastating toll. Agressive prosecutions have people terrified (today, the first escort website was successfully prosecuted). Companies are not spending.

On a CNN interview, Stuart Lawely the head of ICM said they spent $30 million after over 10 years to get .XXX to pass. So your not really seeing dollar signs if u havent even made back half your budget.

Also, who would even pay a pornography tax if your business has nothing to do porn? Interesting.